NEW YORK--Aug. 11, 2005--The Board of Directors
of American International Group, Inc. (AIG) has increased the
quarterly cash dividend on the company's common stock to 15 cents per
share from the previously declared 12.5 cents per share. The dividend
is payable on September 16, 2005 to shareholders of record on
September 2, 2005.

This represents a 20 percent increase in the quarterly cash
dividend. It is the second time that the Board has increased the
dividend within the last year and the twentieth consecutive year that
AIG has increased its dividend.

American International Group, Inc. (AIG), world leaders in
insurance and financial services, is the leading international
insurance organization with operations in more than 130 countries and
jurisdictions. AIG companies serve commercial, institutional and
individual customers through the most extensive worldwide
property-casualty and life insurance networks of any insurer. In
addition, AIG companies are leading providers of retirement services,
financial services and asset management around the world. AIG's common
stock is listed in the U.S. on the New York Stock Exchange and ArcaEx,
as well as the stock exchanges in London, Paris, Switzerland and
Tokyo.